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Whistleblower backs down after fraud claim

The whistleblower who alleged corruption at a West Australian hospital won't give evidence to a public inquiry after it was revealed she is wanted for fraud and identity theft in America, but there are other witnesses who could.

Ashton Foley, whose damning allegations to a parliamentary committee against the privately run Peel Health Campus sparked a government inquiry, has admitted she was imprisoned in the United States for about six weeks in 2008 on fraud and identity theft charges.

Records in the US show Ms Foley, under the alias Michelle Marie Foley, is still wanted there on warrant issued in Georgia in 2011 over charges of theft and identity fraud.

The ABC reports she plans to return to the US to sort the mess out.

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After quitting her job on Monday as chief executive of the Orbost Regional Health centre in Victoria, Ms Foley has now said she won't give evidence to the WA inquiry headed by Professor Bryant Stokes.

"I'm damned if I do and I'm damned if I don't because, if I don't (give evidence), they'll say I've lied all along," Ms Foley told News Ltd.

"And if I do testify, they'll try to discredit my evidence anyway."

Andrew Martin, of Orbost Regional Health, confirmed to AAP that Ms Foley had offered her resignation, and it had been accepted by the board.

He also said they would look into their recruitment process, following the revelations.

Peel Health Campus' current chief executive, Neale Fong, said the hospital now wanted criminal investigations launched into Ms Foley's qualification claims, which she gave to both the WA parliament and her former employers.

"We have been shocked at what has been unearthed. It was not a deliberate attempt to try and go and find material on Ms Foley. It kept coming out, and will keep coming out," Mr Fong said.

"It is a serious offence to lie to a parliamentary committee. That is a matter for the parliament and the police to get involved in.

"We will be reporting this to the police, because she was employed at the Peel Health Campus under the misunderstanding she had these qualifications."

WA Premier Colin Barnett slammed the opposition for running hard with Ms Foley's claims, saying the party had milked her allegations for political mileage, which he labelled "reprehensible".

Opposition spokesman Ken Travers said on Monday that WA Labor was not ashamed of playing a central role in exposing the many problems at the hospital near Mandurah, south of Perth, and getting inquiries underway.

"There are so many issues that were raised that, in my view, warrants serious inquiry." he said.

"The bullying, the intimidation, the turnover of senior staff. There clearly has been a problem down at Peel Health Campus and it requires an investigation."

Mr Travers said it was a shame that there was not a full judicial inquiry.

Damning evidence about the hospital did not solely come from Ms Foley and there were in fact many witnesses, he said.

"It comes from a whole range of witnesses who have highlighted problems with that health campus that need thorough investigation."